Darden price target lowered to $155 from $160 at BMO Capital

BMO Capital lowered the firm’s price target on Darden to $155 from $160 and keeps a Market Perform rating on the shares. The company’s Q1 earnings exceeded consensus on stronger comps and more favorable food costs, but consumer commentary suggests potential negative shift in consumer behaviors at the same time as Darden’s pricing and inflation are set to diverge, the analyst tells investors in a research note. While the management demonstrates superior execution in a challenging operating environment, the lack of visibility into the medium-tem operating environment with an increasingly uncertain consumer outlook and persistent inflation keeps BMO on the sidelines, the firm added.